How to Transfer Shares from One Demat Account to Another?

Investing in the stock market can be a lucrative way to build wealth over time. Thanks to fintech, trading has become easier than ever before. Shares can now be stored electronically through dematerialised (Demat) accounts, eliminating the need for physical certificates.

 

However, transferring shares from one Demat account to another can be a complex process if you are new to the system. 

 

Transfer of shares from one Demat account to another may be required when you change your DP or when you want to consolidate your holdings in a single account. However, transferring shares involves a few steps, which are mentioned in detail.

Step 1: Open a Demat Account With the Receiving DP

The first step to transfer shares from one Demat account to another is to open a Demat account with the receiving DP. The receiving DP is the DP to whom the shares are being transferred. 

 

For this, you need to submit a Demat account opening form along with the necessary documents to the receiving DP. The documents required for opening a Demat account may vary from one DP to another. However, here are a few common documents you have to submit:

• Identity proof (PAN card, Aadhaar card, Voter ID, Passport)

• Address proof (Aadhaar card, Voter ID, Passport, utility bill)

• Bank account details

• Passport-size photographs

   

Once you open a Demat account with the receiving DP, you will get a Unique Client Code (UCC) and a Demat account number. 

 

While UCC is a unique identification code assigned to each investor by the DP, the Demat account number is a unique identification number given to each Demat account. Hence, knowing this step is essential when initiating a Demat account transfer.

 

Step 2: Obtain a DIS (Delivery Instruction Slip) Booklet from the Receiving DP

The next step is to obtain a Delivery Instruction Slip (DIS) booklet from the receiving DP. A DIS is a document used to transfer shares from one Demat account to another. This contains the following details:

• Name of the investor

• Demat account number

• Name of the receiving DP

• Demat account number of the receiving DP

• Details of the shares being transferred

   

You must fill in the DIS with the required details, sign it and submit it to the receiving DP. The DIS booklet contains a series of slips, and each slip can be used to transfer a certain number of shares. 

 

You have to fill in the number of shares to be transferred on each slip and submit them to the receiving DP.

 

Step 3: Submit a Demat Request Form to the Transferring DP

The next step is to submit a Demat Request Form to the transferring DP. The DRF is a document that transfers shares from one Demat account to another online. It contains the following details:

• Name of the investor

• Demat account number

• Name of the receiving DP

• Demat account number of the receiving DP

• Details of the shares being transferred

   

You need to complete DRF with the required details, sign it and submit it to the transferring DP. The transferring DP will verify the details and initiate the transfer of shares to the receiving DP.

 

Step 4: Monitor the Transfer of Shares

After submitting the DRF and DIS to the transferring and receiving DPs, you need to monitor the transfer of shares. The transfer of shares usually takes 2-3 business days to complete. 

 

You can track the transfer status by logging into your Demat account or by contacting the DPs. Once the transfer of shares is complete, you will receive a confirmation of the transfer from both the transferring and receiving DPs. 

 

The confirmation will contain the following details:

• Number of shares transferred

• Date of transfer

• Demat account numbers of the transferring and receiving DPs

While transferring shares from one Demat account to another, consider the following pointers:

 

1. Check the Details: Before initiating the transfer of shares, you need to ensure that the Demat account and the DIS details are correct. Any mistake in the details can result in the transfer of shares to the wrong Demat account.

 

2. Submit the Documents: Ensure you submit all the required documents to the DPs for opening a Demat account and transferring shares. Failure to submit the necessary documents can delay the transfer of shares.

 

3. Check the Charges: DPs may charge a fee for opening a Demat account and transferring shares. You need to check the charges and ensure they are reasonable before doing the same.

 

4. Monitor the Transfer: You need to monitor the transfer of shares to ensure that it is completed within the expected timeframe. Any delay in the transfer can result in a loss of opportunity or a loss in the value of shares.

  

Transferring shares from one Demat account to another is a crucial aspect of investing in the stock market. With the growth of digital trading platforms and the ease of online transactions, the process of transferring has become more streamlined and efficient.

 

As an investor, it is important to understand the steps involved in transferring shares and to remember the necessary precautions to ensure a smooth transfer. By following the guidelines and keeping a watchful eye on the process, you can securely transfer your shares from one Demat account to another.

Check out all necessary details of the Demat account transfer on Bajaj Markets.